EC improves Albania’s 2024 GDP growth f’cast to 3.3%

The expansion of the EU candidate country's economy in 2024 is expected to remain close to the 3.4% increase recorded in 2023, as a booming tourism sector and higher wages drive spending and inflation moderates, the Commission said in its Spring 2024 Economic Forecast. However, sluggish employment growth might hinder household consumption, the key economic growth driver.

Inflation is seen decelerating to the 3% target of the country’s central bank in 2024, on the back of braking import prices and an appreciation of the domestic currency, the lek

“This outlook is subject to downside risks, mainly related to the vulnerability of the dominant rainfall-dependent hydroelectric production to weather conditions, a possible resurfacing of inflationary pressures, exchange rate volatility and increasing shortages of skilled labour aggravated by emigration,” the European Commission said.

The Commission also set its GDP growth projection for Albania in 2025 at 3.5%.

Albania applied for EU membership in April 2009 and was granted EU candidate country status in June 2014.